(a) The OIG recovers overpayments made to providers within the Medicaid or other HHS programs, whether the overpayment resulted from error by the provider, the claims administrator, or an operating agency, misunderstanding, or a program violation.
(b) Application. The OIG may recoup from any person if it determines that the person committed an act for which a person is subject to administrative actions or sanctions, including the following:
  (1) commits a program violation that leads to the payment of an overpayment;
  (2) has failed to pay a debt owed to Medicare or to any Medicaid program as the result of fraudulent or abusive actions by a person participating in such program;
  (3) is affiliated with a person who commits a program violation that leads to the payment of an overpayment;
  (4) commits an act for which sanctions, damages, penalties, or liability could be or are assessed by the OIG; or
  (5) who causes or receives an overpayment.
(c) Notice includes:
  (1) the specific basis for the overpayment or debt;
  (2) a description of facts and supporting evidence;
  (3) a representative sample of any documents that form the basis for the overpayment or debt;
  (4) the extrapolation methodology, information relating to the extrapolation methodology used as part of the investigation, and the methods used to determine the overpayment or debt in sufficient detail so that the extrapolation results may be demonstrated to be statistically valid and are fully reproducible;
  (5) the calculation of the overpayment or debt amount;
  (6) the amount of damages and penalties, if applicable; and
  (7) a description of administrative and judicial due process remedies, including the provider's option to seek informal resolution, the provider's right to seek a formal administrative appeal hearing, or the provider's option to seek both.
(d) The person who is the subject of a recoupment of overpayment or recoupment of a debt is responsible for payment of all overpayment amounts or debts assessed.

Source Note: The provisions of this §371.1711 adopted to be effective October 14, 2012, 37 TexReg 7989; amended to be effective April 15, 2014, 39 TexReg 2833; amended to be effective October 1, 2015, 40 TexReg 6585; amended to be effective May 1, 2016, 41 TexReg 2941